Solved: What is the expected return of a portfolio, Finance Basics

+44 141 628 6080
[email protected]

What is the expected return of a portfolio

Problem:

Suppose Intel stock has a beta of 2.16, whereas Boeing stock has a beta of 0.69. If the risk-free interest rate is 4% and the expected return of the market portfolio is 10%, what is the expected return of a portfolio that consists of 60% Intel stock and 40% Boeing stock, according to the CAPM?

Portfolio beta =
Expected return of portfolio =

Solution Preview :

Prepared by a verified Expert

Finance Basics: What is the expected return of a portfolio

Reference No:- TGS02037817

Now Priced at $20 (50% Discount)

Recommended (95%)

Rated (4.7/5)

Have a Question? (oR Write a Review)

Write atleast 100 words!!

Recent Questions Asked Finance Basics

Q : What are examples of assertiveness techniques

List three to five examples of assertiveness techniques that you believe might be useful to a supervisor.

Q : Prepare an analysis showing eagles line elimination

If the Eagle line is eliminated, $34,000 of fixed costs will remain. Prepare an analysis showing whether the Eagle line should be eliminated.

Q : Benefits and costs of using sites like alibaba

List in separate columns,the benefits and costs of using sites like Alibaba's to trade internationally

Q : Financial leverage and operating leverage based problem

What is the usual relationship between financial (debt) leverage and operating leverage? Why is this so?

Q : What is the expected return of a portfolio

What is the expected return of a portfolio that consists of 60% Intel stock and 40% Boeing stock, according to the CAPM?

Q : Why are listening skills important

Why are listening skills important in becoming a competent communicator? Share an example of a situation in which poor listening skills caused miscommunication

Q : Impact of the marketing of a chain of fitness

List the four characteristics that distinguish services from goods and discuss how each would impact the marketing of a chain of fitness centers

Q : Targeting and positioning strategies used by the company

List your favorite clothing brands and try to guess the targeting and positioning strategies used by the company that made it appealing to you

Q : Review listening to performances other than music

There are differences in listening appreciatively depending on the context: live (face-to-face) versus recorded or transmitted performances (TV, video, radio)

1954141

Questions
Asked

3,689

Active Tutors

1461707

Questions
Answered

Start Excelling in your courses, Ask a tutor for help and get answers for your problems !!

ask Question

Asked Questions

Discuss patient with athsma about use of bronchodilators

You're instructing a patient with athsma about the use of bronchodilators. You should teach the patient which one?

Discuss new forms of advertising changing opdps work

How have social media and other new forms of advertising changing OPDP's work?

Observing and reporting a correctional clients behavior

Observing and reporting a correctional client's behavior is extremely important, to ensure they receive the right mental health care.

Discussion about improve patient satisfaction scores

You are trying to improve patient satisfaction scores in your hospital's emergency department. You decide to poll 40 patients a day for three weeks.

Problem concerning about the risk for stroke

Sam is concerned about his risk for his stroke since his dad died of stroke at age 57 based on the following information why would you recommend

Patient presented with acute-onset abdominal pain

You are on your 5th straight duty in the Urgent Care and you are seeing a 18 yo may who presented with acute-onset abdominal pain for 2 days.

Discuss - male with a history of moderate persistent asthma

A nurse is caring for an 8-year-old male with a history of moderate persistent asthma. He is accompanied by his mom and dad who reported